the department of treasury secretary janet yellen. welcome to the committee on ways and means madam secretary. we are honored by yourhe presen. since the last time the u.s. economy is made substantial progress it's recovering from once-in-a-lifetime we hope pandemicph catastrophe. during the first months of the pandemic so many businesses failed or cut back operations that hit levels this nation has not seen since the great depression. i would write all that on march 11 of 2020 when dr. fauci offered his warning, it turned out to be accurate about what was coming. we saw 22 million americans leave the workforce. but implement rate that exceeded 14%. it was a staggering blow and none of us knew what a recovery might look like or how long it would take. already though the economy is back at full employment. unbelievable when you stop and think of it. every job now that we lost has been returned. and as i noted this morning 11 million american job opportunities still exist. there almost two jobs per person that are available. wages are r

the treasury department employees were heroic. they pushed out life-saving economic relief during the crisis. under unforeseeable extraordinary hardship of people in the treasury department managed to switch stimulus payments, and hence multi-payments and other relief measures that help millions of householdsand businesses by . your team met him secretary made a difference in the lives of the american people and we appreciate your leadership. at the same time many of us would like to see a better resource irs to continue to promote greater fairness and equity in the administration and enforcement to impact loss. it is not fair low income families are on a much higher rate than families and the irs must treat all taxpayers fairly and equitably rent for the many reasons i hope to see progress on billback better. the package our committee of the advanced and house house with the incorporation of long-overdue tax priorities. the bill not only makes our more equitable by making sure corporations pay their fair share but also supplies t

this story that we must not bow to the strikers, says treasury.— strikers, says treasury. this is a auestion strikers, says treasury. this is a question of _ strikers, says treasury. this is a question of not _ strikers, says treasury. this is a question of not giving _ strikers, says treasury. this is a question of not giving in - strikers, says treasury. this is a question of not giving in and - strikers, says treasury. this is a | question of not giving in and the rmt is _ question of not giving in and the rmt is about to go on strike next week— rmt is about to go on strike next week and — rmt is about to go on strike next week and that if you give into the unions _ week and that if you give into the unions the others will step in and we will have a spiral of wage claims _ we will have a spiral of wage claims. reading the story makes me think that _ claims. reading the story makes me think that we should have the prices and incomes board back. it used to be and incomes board back. it used to he e>

then she was joe biden's treasury secretary the transformation was complete, among the first act as treasury secretary was an order of changing the mission of the treasury departments financial stability oversight council. that council was created by congress after the last financial crisis as its name suggests to prevent something similar from ever happening again. and for about a decade it focused on questions that might prevent another meltdown. like subprime lending and automatic trading on wall street, relevant questions. jenny ellen, the council change their attention to a fashionable issue she was consumed with. global warming. "we must look ahead at emerging list, climate change is obviously a big one." she sent letters saying the same thing, as for inflation which traditionally was a poor concern of government economists, that was the emerging risk they were worried about, jenny ellen shrugged that off, inflation, if that happened, she told us it will be "transitory." in the history of brad predictions from washington, that might take first place. since joe biden was president, the

to come out of treasury. i just helped get you $22 million in additional funding to help accomplish that. in the meantime because there is no rule, tax justice has just put america at the top of the financial seek recy index. number one. this is not an index on which we want to be number one. senator whitehouse: can you tell us anything about when you are going to be done with the beneficial ownership rule? it's been over a year. secretary yellen: last december fincen did publish a notice of proposed rule making to implement the beneficial ownership reporting requirements and that's the first rule making. the second will govern access to the beneficial ownership information system. and that will be published certainly this year. all i can tell you is that -- we appreciate the extra funding. but to fully implement this we will in fiscal 2023 we need full funding for building of this database. but we appreciate the funds that were in the ukraine supplemental effective implementation of the corporate transparenc

treasury. so, that bland, especially the last years, that benchmark has been challenged so if the benchmark is negative, that means we're overlaying over the performance that has been negative. if it's positive, it means we're adding value. so, you need to lock at the benchmark performance and now, what i would say is that overall for the long-term, we expect positive return from 6832 to blanded portfolio. that's been case in 2019. but 2018 when we started in march, it was -- in may, it was higher equity and 2021 were challenging. i would say it's kind of, at this point, it's almost neutral. it's not adding that much on the total. we were beneficial, if you see on exhibit 2, it added a little bit on the kind of the difference but quite substantially on the equity side because we added -- moved it in 2020 and moved it in the beginning of 2022. it's negative because the bond performance has been challenged. >> so in other words, the performance here is reflective of the market. it's not -- it's n

you see the 10-year treasury is higher below 3.24%. 2-year treasury is 3.2%. we do see the inversion effect taking hold between two years and ten years. it waivers about we will keep an eye on that as they stick together. we will see how it plays out >>> also what is happening with cryptocurrencies they are sharply lower this morning. bitcoin prices are no longer trying to hover around the 30,000 mark. just above $24,000 down 12% elsewhere in cryptocurrencies with the smaller tokens and coins, ethereum prices down 17%. $1,234 if you look over the entirety of cryptocurrency, we are talking sharper losses for some of the smaller tokens from bitcoin and ethereum. >>> let's get a look at the trade in europe. julianna tatelbaum is in the london newsroom with the latest. julianna >> dom, good morning here in europe, we are seeing continued heavy selling. stocks are down. bond yields are up in the magnitude of the moves lower, dak is down 2% right now. the french market is down about 2 2.25%. luxury names are weighing down the market the covid situation in china is w

well, secretary i janet yellen, she is secretary of the treasury, that is part of the treasury, that is part of the treasury, that is part of the administration so they are on one message and the fed is working very hard behind—the—scenes in trying to stay way clear in the politics here, but yes, treasury secretary has basically come out first and said that she misunderstood the signals and she didn't call it correctly, and we will see what other people do, butjanet and we will see what other people do, but janet yellen was really the first want to fall on her sword in this which was maybe for political reasons that happen. maybe for political reasons that happen-— maybe for political reasons that ha en. ., that happen. 0k, we will have to leave it _ that happen. 0k, we will have to leave it there _ that happen. 0k, we will have to leave it there but _ that happen. 0k, we will have to leave it there but thanks i to leave it there but thanks very much. stay with us on bbc news. still to come: japan reopens to foreign visitors after a two—year ban, but do the strict rules make

good supply outside of the treasury market. treasuries have been low in supply because effectively bills have been cut since back in april, and they continue to be in low supply but with a high demand. that is why you see lower yields on the short-term treasury market sites. when you go into credit markets, commercial paper, other types of stuff, short-term notes, they are in good supply with liquidity and good demand at this point. kailey: as lisa talks about the fed pulling liquidity out of the market, that process is only just a gun. what can we expect to unfold over the coming months if that happens in substantial fashion, considering how far this market has already moved just in anticipation of it? deborah: to get treasuries back into the marketplace would be a great thing. longer-term treasury market standpoint, you seem the rrp, trading at over $2 trillion on quantity basis for the last two or three trading sessions, and if you end up with more collateral than what i would call traditional counterparts in the marketplace

the inversion not quite there for the 2-year treasury and 10-year treasury it has been hovering with the 2-year treasury could be yielding more than the 10-year treasury >>> oil prices are in focus here they have been the momentum trade to the upside for sure over the course of the year. a breakdown yesterday. u.s. benchmark crude back up to $121.75. world benchmark ice brent is up to $123.15 natural gas prices up .76% at $8.67. >>> and now tracking cryptocurrency the former tests the $20,000 mark and some asking if it is a new trading range for bitcoin. we are down to 22$22,570. ethereum is down at $1,218 is the last trade >>> around the world, we have more red arrows in asia overnight. a possible, possible rebound under way in europe. let's get a check of the action with jp ong in singapore and julianna tatelbaum in the london newsroom jp, we will start with you >> thanks, dom asian markets extending the selloff. we see some life in chinese markets. we start with the losers hopes or talk about the upside hikes with the fed has rattled sentiment here it kept the nikkei lower the jap

among palin'se, first acts as treasury secretary was ane order changing the mission of the treasury department's financials stability oversight council. now that council was created by congress after the last financial crisis, as its name suggests to prevent something similar from ever happening again. and for about a decade it focused on questions that might prevent another meltdown. questions like subprime lending and automated trading on wall street, relevant questions. but under janet yellen, the council turned its attention to a farng more fashionable issue that she was consumed with global warming. quote we must look ahead at emerging risks. yellen proclaimed. b climate change is obviously the big one . the worldeletterr to bank telling them the same thing as for inflation, which f is a core concernnm of government economists. that wasmi the emerging risk j they were worried about yellen just shrug that off inflation if that happensed, she told us n a now famous quote it'll be quote transitoryy in the history of bad predictions fro washingtonon which could fill volumes that might take firs

the 10 year treasury bond yield is 3%. that instrument should be one of the most responsive to inflation fears. 3% suggests gdp growth 3%, 4% the next 10 years. it is not being corroborated by fixed income markets, and i do not think we are in a period where we cannot extricate ourselves from this. the inventory stories are a very good example of why inflation has become a problem. the scrambling to bring more and more inventory to satisfy demand, stay-at-home demand, went into overdrive, and i believe the narrative in the last year, inflation, gave purchasing managers this idea that, ok, what is the worst that could happen if i build inventories. the worst that could happen is i am able to deliver inventory profits, sell at a higher price. that is not going to happen. that is not going to happen. i have never seen inventory surges like this in my career and i have been around for a long time. 33% at walmart, 42% at target, 74% -- no, 50% at kohl's. very broad-based. we are going to see a lot of discounting. what is beginn

treasury yields are rising. we're seeing the treasury market not pricing in much of a recession or risk off environment and high yield spreads. credit borrowing costs are not going up much. they're staying really tight. the bond market is chilling right now. it is not too worried about the economy. charles: with that in mind the liftoff by the federal reserve fastest in history will be a mistake? >> we think a lot of tightening in the pipeline. they will about 50 basis points, 50 basis points, 50 basis points and do quantitative tightening about $100 billion in a month. that is as much tightening we've seen in modern history. we think the economy is slowing. they have to be careful pushing too hard on the brake into slowing economy. charles: i asked a five folks about recession, they more or less said no. you're saying possibility? >> more of a possibility of recession next year. really be driven by the fed. they will have to make that choice by the end of the year. charles: have to ask but the momentum etf beca

in credit or the sovereign space, and treasuries? lisa: treasuries are anyone's guess. we don't know. everyone is trading off every inflationary print. on the credit side, if you look at the fundamentals, the fundamentals are not showing the same stress the pricing is. maybe they will. artists tend to get ahead. this is the descendants -- dissonance and tensions underpinning the volatility in yields. ok. jonathan: it is not you, damien. lisa: you agree, don't you damien? damian: relative to recent years, positive yield now. no figure, 6040 back in june. jonathan: we heard it from david earlier, bonds were back. scott pushed 350 on a 10 year, same thing. lisa: exactly. i have to say, are you hung over? there is this idea i have been bearish for so long. if you see yields and an economy that isn't falling off the rails yet, you can make every argument under the sun. i understand. jonathan: equity futures on the s&p, .9%. on the s&p this week, down 6% this week. the biggest loss since a pandemic. 321.62. we talked about the median year-end forecast on the south side of wal

it is exceptionally thin in treasury markets. when we have rapid repricing these tend to be exaggerated. >> at what point d.c. market functioning breakdown in a way that catches the fed's attention and beyond. ed: market functioning, particularly in treasuries and credit and the fact that it spread to investment-grade credit, is a yellow flag. this is one of the reasons the fed brought the balance sheet to bear did march 2020. it was to add liquidity. i think it is a really unhealthy sign that it is happening this early in the tightening process. >> it has barely begun and we have already seen markets move so far. 10-year treasury yield north of 3.3%. at what point do we actually see yields moving lower because of growth concerns rather than higher expectations of higher fed rates? ed: that is the critical question because, so far, we have seen the tightening cycle move forward in apparel a move in the curve higher. i think that dynamic was difficult to sustain we have risk markets getting weaker. i think it will be a point at wh

. >> treasury secretary janet yellen acknowledge that the u.s. is dealing with unacceptable levels of inflation and that prices are likely to remain high making it a top economic clarity for the administration, she testified in front of the senate finance committee for two and half hours. >> the committee will come to order. this morning the finance committee welcomes treasuries for a hearing on the budget. this is an important opportunity to discuss big economic challenges. that is where i will begin. i'm coming off a string of town hall meetings across my home state of oregon, and colleagues, everywhere i >> the number one topic is inflation, people are feeling at the grocery store and at oregons going for five dollars, $.42. people are paying more in rent, in shops and at restaurants. this is taking place at the same time americans learned on friday that unemployment is 3.6%, near 50 year lows and wages have been rising steadily. overall, the job market is the strongest it has been in multiple generations. but in terms of what our families are

treasuries retreat after reopening from the holiday. chinese demand plays into commodities with iron ore raising gains. copper rising a bit on hopes of housing support. plus, airbus says it because not make single jets fast enough to make demand. we hear from the ceo. rishaad: sentiment is positive today. we also have bond markets under a bit of pressure seeing yields up. for the u.s. looking at 3.29%. there is no inversion at the moment. just seeing some pressure for australia and new zealand with yields up about six basis points. looking at equities. the nikkei up but currently some of this movement on the bond market can be attributed to comments coming out of jim bullard, who of course is the st. louis fed president, saying u.s. inflation expectations could become unmoored, possibly leading to high inflation and highly volatile. this is on the heels of larry summers saying he sees a significant chance of the country will face a recession. indeed, joe biden has been on the phone with him, reiterating a u.s. recession is not inevitabl

year treasury. the yield differential we are continuing to see between the u.s. and japan playing into yen weakness, i off that 135 level, some economists indicating that one of 50 could also be bottomless now. nikkei225 snapping a four day win streak. yet weakness playing into the strength. korea, we are keeping an eye on kospi trading below -- 20% below its 50 week i, samsung major focus of the open. we had the focus -- morning out from intel. local media reporting samsung is cutting production in india, brazil, it vietnam. the korean won under the watch, we are seeing weakness, merrick security sink the biggest driver is global uncertainty. turning onto westerly, asx 200, staggered start, a few minutes to come online. inflation fears a major factor of markets this morning, the australian government saying inflation could breed 6% or possibly beyond that as well. aussie and kiwi bonds 11 up to treasury yields, kiwi added 10 year high. shery: our next guest says is your growth prospects are better

treasuries. after the rebound they have had in yields so far, i realize it has been a painful one for investors, but they are starting to look much more attractive in terms of their potential to produce income. highly competitive with the gold standard. shery: the only time we see a huge selloff, we see that dip and investors rush back in. it doesn't appear we are seeing that any longer. what time horizon do you need to have for this mentality to work for you? guest: for this mentality to work for you, your timeline needs to be longer than a few weeks or a few months. looking at buying equities today, global equities for the u.s., they have effectively undone the valuation of the post virus era. that is great. that means we are buying stocks at a bargain today. but we see all this risk tied to a recession that is likely to happen in 2023. that means any investor who is buying this step needs to come into it with the idea they are going to see a profit on this in three years, not in three months,

also this, the treasury secretary janet yellen testified again on inflation. edward lawrence has the update in washington. he has got more. edward? reporter: liz, as president joe biden left town his treasury secretary tarred and feathered again on capitol hill about gas prices and inflation. >> this is freakin' disaster. >> i know you're with the administration. you have to follow certain talking points. i get that. >> i don't understand how the smartest people in the world sitting in this administration tell us everything is okay. reporter: when the president came into office year-over-year inflation was 1.4%. the message in the hearing president biden's policies are the crime. crime also plaguing this administration. this very emotional hearing on capitol hill about guns. those testifying affected by the mass shooting that left 19 young students and two teachers dead. >> [inaudible]. told her we loved her. we would pick her up after school. i can still see her walking with us towards the exit. real keeps going across my memory, she turns her head and smiles

it is flirting with the 10-year treasury and 2-year treasury for the the first time since april this is all coming with the fmoc meeting and awaiting for the fed decision on wednesday. >> 75 is back on the table. >> it stretches beyond that. people are saying the threat for in intra-meeting hikes. >> the dow is off 15%. what is a realistic dow pull back we will have katie stockton on she says it is a cyclical bear and secular bull >> to know it is a secular bull? >> i assume we go down 20% >> last time she was on, i thought she thought things would be flattish and this fall, if there is a form the capitulation, that is when it is coming >> it is happening -- >> it is happening sooner? >> unless it is starting now and we hit the lows close to the fall if we go to 3,800 on the s&p, there is a lot of this we feel it is frightening. we are up 3,800 on s&p the lows she talked about were 3,200. >> less than 20. >> that's another bear market almost a correction >>> talk about pain. you felt it over the weekend at the pump the average price of the gallon of gas topping $5 in the u.s. for the

we saw overnight treasuries tumbling. the 10 year rate the highest since 2011 and more parts of the yield curve inversion. the fears of recession are playing out in the early part of the session here in australia. the biggest slump in australian 10-year debt we are looking at since october. our next test says when it comes to japan the government there has made up its mind to shoe for inflation even if it is the expensive, imported kind. let's bring in martin schulz. always great to have you with us. there are some views on the street that the yen is still undervalued against the dollar. martin: i come out of industry so i look at prices and the yen is terribly undervalued. you will find it is at a 50 year long low pure this is amazing. we were talking in the early 1970's about japan as an emerging country. this troubles industry. it troubles the ceos. haidi: is this the kind of pain policymakers are willing to tolerate? and to what point if it gets inflation toward some semblance of the target? martin: while the bank of

treasury secretary there. still with us is the global chief investment strategist at blackrock, where do you position equities in an environment like this? wei: we are bunkering down, we lowered risk taking. there is not a part of the equity market we would want to own in the upper sense. -- we see a challenging environment from the perspective of elevated inflationary pressure. earnings are way too optimistic at this point. u.s. earnings are forecast to grow at low double digits, 11% eps growth. there is no way we can deliver that from u.s. corporate's. that shows the near-term risk on the downside, not to mention corporate margin being at a very elevated level in the face of inflationary pressure and labor cost going up. all of that is why we have lowered risk taking, but as i said, we want to lean into markets when we see the dovish vivid coming -- pivot coming through. that requires central banks acknowledging the trade-off, and choosing to live with inflation, which is not something we have seen because o

they are calling that because of the push higher we are seeing in treasury yield. they are saying the value for the yen is 136 18, that's one move up from 13262. this terminal chart you can see those moves off the 135 level following that intervention level we saw on a verbal level with the bank of japan governor yesterday saying that seeing a drop on the yen is a negative for the economy. rishaad: let's take a quick look at something moving here. having a look at stocks. edits along with what's been going on. up one point 8%. alibaba decline in 30% plus tencent weaker here. that's have a look at some of these crypto stocks as well. those ones are crypto related and japan. we are seeing the likes of bitcoin at the moment falling back 12%. this is bloomberg. ♪ rishaad: -- >> they probably had little room in the current level of pressure. plus, for the domestic economy to change their policy on yield curve control. china starts to complain, when korea starts to complain and certainly u.s. exporters start to complain, then we are getting into a situation where they

treasuries in focus. bonds under pressure. some parts of the treasury yield curve inversion. we also have bitcoin in their midst. the island central bank governor talking about interest rates. here is annabelle droulers having a look at what is going on market wise. annabelle: it is right across the screen. the thailand central bank governors saying that too slow rate are not a good thing. korea is selling off the most since november 2020. india is the next major market we're are seeing coming online, futures went into a weaker start at the start of trade. in the fx space, we are keeping an eye on the korean won selling off this morning, risk aversion the order of the day. selling off the kospi being dominated by foreign sellers. the yen touching the 135 level. we saw it reach that earlier instrumentalists say we could reach 135.15 before the fed meeting this week. in the commodity space we are seeing oil decline for a third straight session. in treasuries, a lot of focus on the 2-year yield. we are seeing a 15-year high. inflation fears not good for the tech sector. nasdaq f

a couple of superlatives the treasury hit 2-year treasury moving higher last week. that was the story on friday now in europe, the 10-year german bund at 3.5 the one to watch is the spread with italian and german bonds. let's look on the screen right now. you can see spreads widening between the 10-year german bund and italian btp. the european central bank raises rates and puts the economies under pressure from the debt perspective. the euro is trading firmly on the back foot. down more than .50%. sterling is splurging do dodown .70% we are seeing movement in the yen. that story of weakness is a big one in foreign currency markets. let's get to singapore to see how asian markets are trading. jp has more. good morning >> good morning, julianna. not a strong market for asian markets. of course, coming off the cpi report on friday and stoking concerns about whether or not the fed will raise rates at a more aggressive clip the rising covid-19 cases in beijing prompted new testing and renewed restrictions and heaven forbid lockdowns we saw this trickle into the markets.

so janet yellen, treasury secretary, ma'am i would love to invite you to iowa. come spend a day in the life of every day iowans. see what they are experiencing at the grocery store. and i guarantee you shall not be so flippant with the american people. elitist attitude that is coming from the left went americans and iowans who are some the hardest hit by inflation, are facing really tough times. so come on folks, let's put in place and good policies. that means if the president and his administration then to unleash american energy to bring this cost at the pump down. they should get bigger regulators off the backs of small businesses. and of course then they should be shifting their focus i've heard against the the belt back better plan are what we call reckless tax-and-spend has popped up again with some of the democrats. they need to stop that. let's get back to good common sense of policy let's not be so flippant about the hardships americans are facing. >> as we note last week we saw ten -- 8.6 and ppi 10.8 this week. how does that apply to authority? numbe

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treasury market is something to behold yields picked up yesterday, the 2-year treasury closed at the highest level since 2007 10-year treasury since 2011. the 10-year treasury is above 3.3% the 5-year is 3.1% joe, talk of mortgages set at this point at 6% is where some of the mortgage rates are coming in crude oil was down yesterday along with everything else in the market this morning is up a little bit. 81 cents to the $1 the energy markets were the biggest decliners. down by 5% that is a steep reversal >> sticker shock for maortgage rates. is that average historically >> probably. 5% or 6% >> it doesn't matter >> it's where you've gone and how quickly you got thaere. >> i'm looking at the vix. got as high as 35. it did not stay there. closed at 33 and change. i don't know what people need or whether we need to recalibrate or what qualifies as a bottom for the vix number you think somewhere above 40 we're nowhere near there the high for the careeryear on vix. you can't see it it must have been an intraday. obviously the averages weren't this low it's what happens when it is this wa

so if treasury yields continue to rise, if the long end of the treasury market is under pressure, it will be very difficult for australian bonds to ignore that, no matter what the rba says. particularly in the 10 year sector of the aussie bond market, even though they may want to see those comments as being more dovish, they are not going to start pricing in much smaller rate hikes because they can see what is happening in the rest of the world and they will be led to a large extent by what happens in treasuries. rishaad: mark, thank you. you can follow more on this story and his amusing on our markets live blog on the bloomberg terminal that mliv . you can get a market rundown and commentary as well as analysis from bloomberg's expert editors to find out how your money is being affected. juliette: let's get more on that and bring in james sullivan joining me here in the singapore studio. we also had some commentary coming through from the st. louis fed resident james bullard saying cpi pressures risk on mooring without fed actions. what is your view? james: it is the critical qu

— which the express mentions that the treasury secretary simon clark came out and _ treasury secretary simon clark came out and said — treasury secretary simon clark came out and said that public sector workers — out and said that public sector workers really should not have to pay rises — workers really should not have to pay rises of any more than 3%. of course _ pay rises of any more than 3%. of course we — pay rises of any more than 3%. of course we don't know exactly what the rail— course we don't know exactly what the rail workers are claiming because _ the rail workers are claiming because the first stage of this dispute — because the first stage of this dispute that has to be settled is a guarantee — dispute that has to be settled is a guarantee of no compulsory redundancies and then they can get on to— redundancies and then they can get on to talk— redundancies and then they can get on to talk about pay and working conditions. but this idea of trying to stick— conditions. but this idea of trying to stick to — conditions. but this idea of trying to stick t

we are watching rising treasury yields, those differentials we are seeing between the treasury and the jgb. we are now back at that 130 level, which is the weakest we have seen for the japanese currency in more than three and a half weeks. that could be a supportive factor for japanese stocks at the open, pointing to -- pointing modestly higher. we did see mining and metals companies fall sharply yesterday after we had the goldman sachs report saying that lithium prices will correct sharply, and we also saw argentina crackdown on export pricing there as well. haidi: we will be seeing asian markets really trying to avoid the downside from jp morgan's hurricane warning, a sentiment that will be weighing on investors' minds. take a look at what we are seeing when it comes to u.s. futures, extending those losses. we saw the s&p falling for a second day after those comments from the j.p. morgan chase ceo telling investors to prepare for that economic hurricane. that selloff really adding a few dating -- a few data points. of course, the concerns over the beige book. meanwhile, we see energy

treasury will then reissue them in whatever form they think it is a port and when it relates to treasury. >> thank you. >> the gentleman from new york, mr. meeks, who is also the chair of the house committee on foreign affairs is now recognized for five minutes. >> thank you, madam chair, mister chair it is good to see you and i know you are hearing a lot of political stuff going back and forth but the american public is trying to understand the language we are talking in today so that we can understand what inflation is. the fact of the matter is i was just recently over in europe. there is inflation in europe just like there is inflation here. although, as i talked to others they say the cause of their inflation may be different. the causes are different, they said maybe demand here but not the case of demand there. it is to resolve inflation in europe, for example, in moldova 30% inflation rate with gas at $15 a gallon. turkey, 80% inflation rate and gas $13 a gallon. i could name places in europe from europe to the united states. is it that we had the supply chains that china shut do

having been in the treasury, it is a tough j been in the treasury, it is a tough time _ been in the treasury, it is a tough time for— been in the treasury, it is a tough time for ministers right now, working _ time for ministers right now, working out what they are going to do, working out what they are going to do. but _ working out what they are going to do, but they do need to make some decisions and this government will need _ decisions and this government will need to— decisions and this government will need to have a plan. at the heart of the issue _ need to have a plan. at the heart of the issue on— need to have a plan. at the heart of the issue on strikes is this issue, this sense — the issue on strikes is this issue, this sense across many industries that inflation expectations are now being _ that inflation expectations are now being built in, so people are expecting a short—term inflation push. _ expecting a short—term inflation push, but — expecting a short—term inflation push, but now we are seeing much longer— push, but now we are seeing much longer term — p

tell us how the fed is coordinating with treasury on this. if treasury and the attorney general take the position that congressional authorization is not necessary, will you and your general counsel commit to pushing back to protect the important role of congress? vice chair brainard: i can certainly say that you are right, that is what the executive order asks for. no, i have not been engaged in any of those conversations. that is not my expertise. it would not be likely. i believe there have been some staff level discussions between the federal reserve, department of justice and treasury. i don't know where the discussions are going to go. it's very hard for me to speculate on that. >> what i think congress is expecting, and i hear bipartisan support for this, is your general counsel and chairman powell has the executive order requiring him to take the position you are taking today, that congressional authorization is required and we will be following up with you on that. on the positive substitution concern about a cbdc. you mentioned the

stock futures and treasury yields rise. hiking plan impacts. president lagarde's crisis toolbox takes shape as she restates the plan for consecutive rate hikes. plus, a crippling strike. u.k. commuters race for the largest rail walkout in three decades as london transport grinds to a halt. dani, warm welcome, i am on tour, i haven't gone rogue, i am in doha. the security to get in here was pretty tough. and of course, john micklethwait with elon musk. i said you should have signed up weeks ago when i invited you. dani: and that's if you can get through the craziness at airports right now. it is popping over there. elon musk, but i'm looking forward to your conversation with nouriel roubini. especially as calls for recession continue to get ladder and he is not known for being the most, shall we say, up mystic guy. manus: not at all. i wonder what he will make of joe biden talking to larry summers. it's not just about one man. this is a two-day event with a spectacular series of conversations from energy in the developed market to africa. we wil

treasury markets. when those market start to show much wider bid offer spreads, or it is difficult to get trades done you know there is a problem. the good news is we have seen central-bank step in to the extent they need to provide liquidity to markets. they are focusing on making sure markets still function in a robust way. we get calls from the fed and treasury department on a regular basis about working -- market functioning. tom: we cannot let you go without a comment on active versus passive. there is an argument this year for active management as financial conditions tightening. the last 10 years it has been easy for passive indexes to post the gains we have seen, that dynamic has changed, what is your pushback? greg: we do active as well as the index. what we say to investors is that it is important they understand how to control costs. the challenges many active managers charge too much for the alpha they generate. if you are going to do active, do it in a low cost manner. tom: thank you indee

treasury and the state so that the treasury can eliminate temporarily these gas taxes and that would be enormously helpful to consumers. >> we appreciate your expertise and all you have done. >>> the first question, aside from gas prices what is the biggest price increase you have seen on facebook -- construction materials. it is very bad. also on facebook michael jennings said food is so high right now i won't even look at something like stakes anymore. and dixon says tires, some brands and styles have doubled. painful all the way around. so stuck on a ship outside shanghai for months, she has been documenting the whole ordeal on youtube. we talked to her about what it was like. and bill gates is in the bay area. talking to us about climate change. jay-z and blue ivy at last night's nba finals. my celebrities and their kids apparently really are just like us. ♪ ♪ how's he still playin'? wife don't touch my piano. kick pain in the aspercreme. >>> welcome back. stuck outside a shipyard halfway across the globe with no idea of when she will be able to return home, four months. made

janet yellen, treasury secretary, ma'am, i would love to invite you to iowa. come spend a day in the lives of everyday iowans and see what they are experiencing at the grocery store and the gas pump, and i guarantee you won't be so flippant with the american people. again, it is this elitist attitude that's coming from the left when americans and iowans , who are some of the hardest hit by inflation, are facing really tough times. come on, folks, let's dart putting in place some good policy. that means this president and his administration may need to unleash american energy to bring those costs at the pump down. they should get big regulators off the backs of small businesses, and of course, they should be shipping -- i heard again that the build back better plan has popped up again with some of the democrats. we need to stop that. let's get back to good commonsense policy, and let's not be so flippant about the hardships americans are facing. >> as we know last week, we saw the cpi at 8.6%. how does that apply? we have people that have never gone to a food b

that creates a bigger case for treasuries. >> a couple of things. the more aggressive the fit is, the more aggressive it is for the long end of the treasury curve. we can high expectations through the summer and we get the slowdowns we are expecting. even if inflation is high, that is going to be good for treasuries. what we are seeing is that a flat curve, five years out. that really implies that is where our market expectations are. jon: you are focused on the fixed income world. the wealth effect, a lot of people have been trying to gauge on this, talking about retail, the health of the consumer. at what point does not become a greater consideration if people are looking at their portfolio statements and making tougher choices on how and when and where they spend? >> every cycle, this happens. they usually start with the household that have the least in the way of savings. this cycle, households at the lower end actually had savings to the fiscal stimulus. that gave us this big boost. what we are seeing is some household seem to be slowing down a

treasury market. we had an enormous jump, could be the biggest today move we have seen in the treasury market since the 1980's. that is a significant change in the input people have to do when they are calculating other asset classes. for a long time, risk free rates were close to zero. people did not need to think about interest rates as a component as to -- as a component of whether they should buy something. that is a higher yield than you have on most dividends in terms -- look at asia for example. there are hardly any asian markets where the average dividend yield is about 3%. u.s. equities are already a big counterweight. if you look in the currency space, it will prompt people to become very defensive in which currencies they play particularly in the g10 space. the dollar will be so outstanding as the currency to hold. this move still has further to go in terms of people rebalancing their portfolios. this is only the early stages of this. we could be thinking about right into the second half of

so to increase the runoff of treasuries and mortgages, i feel confident something would break. then secondarily, we are in midterm cycle, election year so many things happen. if you look at all the history of data going back to the '50s, second year is the worst you have a year after that are some of the best years finally this is looking out. i think as many rate hikes as we get within the following 12 months, we will take most of them back. either we will be in recession or the economy is slowing. then finally is that currently, no one talks about this, if we got to a fed fund of 4 and that was across the treasury curve and kept our 21 trillion gdp and we matured all the debt and recycled it, actually interest expense would be more than national defense and up there with social security that's not going to happen i think i see what jim is saying i'm more open to say six months from now will be very different. i think that's where we have to listen to jim and tom and mark newton and kol on vick and say there's a scenario that doesn't look like today. >> josh, oracle didn't say

treasury secretary on inflation. why she says she got it wrong. in the meantime, this just in, gas prices jumped to a new record high. so when is this fever going to break? >>> a father make an unbelievable catch at the mets nationals game. look what he's holding in his other arm, though. you inspired the lexus es to be, well... more you. so thank you. wewe hope you like your work. ♪ okay season 6! aw... this'll take forev—or not. do i just focus on when things don't work, and not appreciate when ? i love it when wor actually works! this dk... and this conference room! i am filing status rorts on an app that i made! i'm not even a coder! and it works!... i like your bag! when your digital solutions work, the world works. that's why the world works with servicenow. (mom allen) verizon just gave us all a brand new iphone 13. (dad allen) we've been customers for years. (dad brown) i thought new phones were for new customers. we got iphone 13s, too. switched to verizon two minutes ago. (mom brown) ours were busted and we still got a shiny new one.